Which of the Following Is an Example of the Gross

question 95

Multiple Choice

Which of the following is an example of the gross private domestic investment component of Gross Domestic Product (GDP) ?

• A) You buy a share of GM stock.
• B) GM buys a new drill press.
• C) You put money into your savings account.
• D) You put money into your checking account.

---

Definitions:

Debt-to-Equity Ratios

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Capital Structures

The particular combination of debt and equity used by firms to finance their overall operations and growth.

Recapitalization

The process of restructuring a company's capital structure by exchanging one form of financing for another, such as debt for equity.

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to risk-free assets.